CVM INSTRUCTION NO. 132, OF SEPTEMBER 4, 1990.

Establishes the accounting bookkeeping standards to be observed in the preparation of statements of the portfolio of securities and financial assets maintained in the country by entities mentioned in article 2 of Decree-Law No. 2,285, of July 23, 1986.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION makes it known that the Collegiate Body, in a session held on this date, based on item III of article 8 of Law No. 6,385, of December 7, 1976, item II of CMN Resolution No. 1,289, of March 20, 1987, as well as the sole paragraph of article 19 and articles 22, 33, and 34 of the Regulation Annex III of the aforementioned CMN Resolution No. 1,289,

RESOLVES:

Art. 1. Approve the attached regulation that establishes the accounting bookkeeping standards to be observed in the preparation of statements evidencing the position of the portfolio of securities and financial assets maintained in the country by entities mentioned in article 2 of Decree-Law No. 2,285, of July 23, 1986, with such standards designated by the abbreviation COTIV.

Art. 2. This Instruction shall enter into force on the date of its publication.

Signed original by
ARY OSWALDO MATTOS FILHO
President

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Regulation attached to CVM Instruction No. 132, of 04.09.90.

ACCOUNTING BOOKKEEPING STANDARDS

1. General Principles

General

1.1. Accounting records may be kept in United States dollars. In this case, transactions made in cruzeiros shall be converted to dollars using the purchase rate for dollars stated in the Opening Bulletin of the Central Bank of Brazil.

1.2. Statements in cruzeiros, including when published (i.e., Statement of Composition and Diversification of Applications and Statement of Sources and Applications of Resources) regarding exclusively the portfolio being administered in Brazil, shall be prepared by converting dollars to cruzeiros, applying the exchange rate referred to in item 1.1 in effect at the end of each period covered by such statements.

1.3. It is the responsibility of the Brazilian administering institution to process the accounting bookkeeping of the portfolio.

1.4. Income and expenses shall be accrued on a daily basis. Withholding income tax on remittances of capital income shall be recognized as a direct reduction of that income when the remittances are approved by the Central Bank of Brazil.

1.5. Expenses incurred with the implementation of the portfolio shall be amortized by the linear method in no less than 5 (five) years from the start of operations.

Evaluation of Shares

1.6. Shares shall be recorded at cost including brokerage commissions and other charges incurred in relation to the purchase. The book value of shares shall be adjusted to market price on a daily basis (based on the last price of the stock exchange where the share was most traded), with the difference between the market price and the book value credited or debited to "Unrealized Gains and Losses."

1.7. In the absence of daily quotes, shares shall be evaluated at their adequate market value. In these cases, however, when a given share has not been traded for more than 30 days, its future recoverability and the need for provision against possible losses shall be considered.

1.8. Cash dividends shall be recognized as income when the respective shares are quoted "ex-dividend." Bonuses shall be recognized only regarding the increase in the quantity of shares.

Government Bonds (LFT) and Debentures

1.9. Government bonds: Treasury Financial Notes (and others that may be created) shall be recorded at their acquisition costs, being adjusted daily based on market prices. Interest on government bonds shall be accrued on a daily basis. The appropriation of discount and amortization of premium shall be recognized on a pro-rata-tempore basis over the life of the bond by the exponential method. Discounts in initial issuances shall be appropriated pro-rata-tempore until the final maturity of the instrument.

1.10. Debentures shall be recorded at their acquisition values; discounts shall be appropriated and premiums amortized over the term to maturity or renegotiation, whichever occurs first. Face income shall be recognized daily using the exponential method. If there is no market quote for debentures, the fund administrator shall, at least at the end of each month, compare the future redemption value (discounted to present value at market rates) with the book value of the portfolio. If the result is positive, the value shall be increased. However, if the result is negative, a provision for unrealized losses shall be constituted. For this purpose, the market interest rate shall be obtained from statistics published for the financial market, mentioning in an explanatory note the source used.

Repurchase Commitments

1.11. Financial applications backed by securities acquired by the Fund with a resale clause shall be recorded at the application price plus accrued income. Given the nature of these operations (generally no more than fifteen days) of this type of investment, its book value will approximate its realization value.

Allocation of Expenses

1.12. According to SRF Normative Instruction No. 200, of December 30, 1988, for determining the base for calculating withholding income tax on income and capital gains earned by investment funds constituted abroad, the linking of incurred expenses shall be carried out observing their relationship with the nature of the income earned, in accordance with the following appropriation criteria:

a) integral, against income or capital gains, according to the unique relationship they present, in the case of expenses of a specific nature, directly and exclusively linked to the obtaining of one of the mentioned categories of remuneration;

b) proportional to the values of income and capital gains earned in the competence period, regarding expenses that do not fall under the terms of letter "a" above.

Concepts

1.13. As the adequate market value depends on the circumstances in each case, a single standard for its determination cannot be established. Some factors that administrators must consider to determine the evaluation method of a paper include:

a) fundamental analytical data related to the investment;

b) the nature and duration of restrictions on the disposal of shares;

c) an assessment of the forces influencing the market in which these shares are traded.

Among the more specific factors that must be considered are: type of security, financial statements, cost at the date of purchase, lot size, discount of the market value of papers of the same class without restriction at the date of acquisition, special reports prepared by analysts, information regarding any transactions or buy/sell offers of the paper, existence of merger proposals or buy offers affecting the paper, price and quantity of public trades with papers similar to the same or comparable companies, and other relevant matters. The above guidelines do not delineate all factors that may be considered. Administrators must evaluate all available indications in determining the adequate value of a paper. This information, together with the factors of judgment by administrators for decision-making, must be commented on in the minutes of the meeting of the Brazilian administering institution, with the underlying data archived for inspection by independent audit.

1.14. Capital income is defined as that income, obtained via interest, dividends, and discount, representing, therefore, the return on the capital originally invested.

1.15. Realized capital gain or loss is the result obtained with the eventual sale or alienation of an asset.

1.16. Unrealized capital gain or loss is the daily appreciation or depreciation of a portfolio of securities as a result of the evaluation technique of each paper at its market prices.

1.17. The net assets of the portfolio comprise the algebraic sum:

• of the portfolio of securities and financial assets;
• of cash;
• of amounts receivable;
• of deferred expenses net of accumulated amortizations;
• and of amounts payable.

1.18. The balance, thus ascertained, of net assets, according to the previous item, is composed of the following portions:

• total of resources received from abroad, net of remittances: of capital income, of realized capital gains, and of repatriation of principal;
• net capital income, accumulated, not remitted;
• realized capital gains, accumulated, not remitted;
• unrealized capital gains, resulting from the evaluation of the portfolio at market prices.

Explanatory Notes

The explanatory notes attached to the semi-annual statements referred to in item 2.2 shall specify:

1.19. The criteria used in the evaluation of the portfolio of securities and financial assets, as well as a demonstrative table of the amounts, in monetary units, of government bonds and debentures distributed by maturities: up to 360; between 360 and 720; and more than 720 days; and the renegotiation conditions.

1.20. The criteria used in the conversion of dollars to cruzeiros, upon the preparation of semi-annual statements for publication purposes.

1.21. The period being used for linear amortization of deferred organizational expenses, provided for in item 1.5.

1.22. The monthly rates applicable and the bases involved in the calculation of fees due to the foreign administering entity, the Brazilian administrator, the Brazilian consultancy, and the Fund's Board of Directors.

Interpretation and Omitted Cases

1.23. Any doubt arising regarding the interpretation of these bookkeeping standards and/or accounting treatment applicable to cases not provided for shall be subject to formal consultation to the Superintendence of Accounting Standards of the Securities and Exchange Commission.

This regulation shall be subject to reformulation, with the objective of its improvement or updating, due to compliance with legal provisions that may be issued.

2. Financial Statements

Nature and Periodicity

2.1. The Brazilian administering institution shall send to the Securities and Exchange Commission, monthly, 10 days after the end of the period, the following documents related to the portfolio, without prejudice to others that may be required:

a) Statement of Composition and Diversification of Applications, according to attached Model A;

b) Statement of Sources and Applications of Resources, according to attached Model B.

2.2. The Brazilian administering institution shall publicly disclose, in a widely circulated medium, the statements referred to in item 2.1 of this regulation, also within the period of 10 days after the end of each semester.

2.3. The dates of June 30 and December 31 of each year are fixed as the closing dates of the semesters for the purposes of publishing the semi-annual statements provided for in the previous item 2.2.

Audit

2.4. The semi-annual statements referred to in item 2.2 shall be audited by an Independent Auditor registered with the Securities and Exchange Commission.

Models

2.5. Model of "Statement of Composition and Diversification of Applications"

a) The attached Model A is already filled in, as an example. This model must contemplate the major groups of accounts as defined in item 1.17, coinciding its total with the total demonstrated in the attached Model B.

b) Observe, in its filling, that the application of the portfolio of securities and financial assets itself must be evidenced with the subdivision into 3 (three) major groupings:

• shares;
• own bonds; and
• bonds linked to resales.

c) Regarding the grouping "shares," its classification by activity sectors is also required, with the various sectors provided for according to the sectoral activities table, attached Model C, with coding being waived.

2.6. Model of "Statement of Sources and Applications of Resources"

The attached Model B shall also be filled in as exemplified;

The columns indicated with $ must be completed as appropriate: US$ or Cr$ 1,000.00.

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ATTACHED MODEL "B"

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(NAME OF THE FUND)

STATEMENT OF SOURCES AND APPLICATIONS OF RESOURCES

(CMN Resolution No. 1289/87, Annex III, Art. 33, II SRF Normative Instruction No. 200, OF 30.12.88)

PERIOD ______

CHANGES IN NET ASSETS OF THE PORTFOLIO OF SECURITIES AND FINANCIAL ASSETS ADMINISTERED IN BRAZIL

$ $

CAPITAL INCOME

With variable income bonds XXX With fixed income bonds XXX Net gains (losses) in exchange XX Others (discriminate in explanatory note) XX X.XXX

EXPENSES

• As discriminated in Explanatory Note,
  identified with capital income. (XXX)
• As apportionment of expenses not identified
  directly with capital income. (XXX)

Sub-total X.XXX
Withholding Income Tax on remittances (XX) Capital income, net X.XXX X.XXX

REALIZED CAPITAL GAINS (LOSSES)

Originating from transactions X.XXX

EXPENSES

• As discriminated in the explanatory note,
  identified with realized capital gains (losses) (XXX)
• As apportionment of expenses, not identified
  directly with realized capital gains (losses) (XXX)

Realized capital gains (losses), net X.XXX X.XXX

NET INCREASE (DECREASE) IN UNREALIZED CAPITAL GAINS (LOSSES)

originating from evaluation of the portfolio at market prices XX.XXX

NET INCREASE (DECREASE) IN GAINS (LOSSES)

IN NET ASSETS

resulting from operations XX.XXX

CASH RECEIVED FROM ABROAD IN THE PERIOD

XXX

CASH REMITTED TO ABROAD IN THE PERIOD

(X.XXX)

Net resources (applications) in the period XX.XXX

NET ASSETS AT THE END OF THE
PREVIOUS PERIOD

XXX.XXX

ASSETS AT THE END OF THIS PERIOD XXX.XXX

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ATTACHED MODEL "C"

SECTORAL ACTIVITIES TABLE

CODE ACTIVITY CODE ACTIVITY
1
010000
AGRICULTURE 103
0000
DRINKS AND TOBACCO
1
010100
Agriculture and livestock 103 0100 Drinks 1 010200 Reforestation 103 0200 Tobacco 1 020000 FOOD 104 0000 COMMERCE 1 020100 Sugar and alcohol 104 0100 Textile articles trade 1 020200 Coffee 104 0200 Fuel distributor 1 020300 Sweets and preserves 104 0300 Home appliances, cine-sound 1 020400 Slaughterhouses 104 0400 Department stores 1 020500 Dairy products 104 0500 Building materials and hardware 1 020600 Pasta 104 0600 Supermarkets 1 020700 Mills and cereals 104 0700 Export commercial companies 1 020800 Vegetable oils 104 0800 Trade of various articles 1 020900 Fishing 1 021000 Various food products 115 0000 MINERALS 115 0100 Asbestos, gypsum and cement artifacts 1 050000 CONSTRUCTION AND ENGINEERING 115 0200 Coal 1 050100 Civil construction 115 0300 Ceramic, glass and crystal 1 050200 Heavy construction 115 0400 Cement and lime 1 050300 Building material 115 0500 Metallic minerals 1 050400 Consulting engineering 115 0600 Various minerals

1
060000
TANNING 116
0000
PAPER AND PULP
116
0100
Paper and pulp industry
1
070000
PUBLISHING AND GRAPHIC 116
0200
Packaging
1
070100
Publishing
1
070200
Graphic 117
0000
ADMINISTRATION AND
PARTICIPATION COMPANIES
1
080000
ELECTRO-ELECTRONICS
1
080100
Electrical components 118
0000
CHEMICAL
1
080200
Home appliances 118
0100
Fertilizers, manures and agricultural pesticides 1 080300 Computer industry 118 0200 Petrochemicals, plastics and rubber 1 080400 Diverse electro-electronic products 118 0300 Pharmaceutical and veterinary products 118 0400 Perfumery and hygiene products 1 090000 FINANCE 118 0500 Prospecting and oil refining 1 090100 Commercial banks 118 0600 Diverse chemical products 1 090200 Development banks 1 090300 Investment banks 119 0000 RADIO AND TELEVISION 1 090400 Credit cooperatives 1 090500 Brokers 120 0000 SERVICES IN GENERAL 1 090600 Real estate credit 120 0100 Warehousing and supply 1 090700 Distributors 120 0200 Real estate companies 1 090800 Financial companies 120 0300 Data processing 1 090900 Leasing 120 0400 Diverse services 1 091000 Insurers 1 091100 Social security 121 0000 VEHICLE RESALE

121
0100
Car resale
1
100000
WOODS AND
FURNITURE
121
0200
Machine resale
1
100100
Woods
1
100200
Furniture 122
0000
TEXTILE, CLOTHING AND
FOOTWEAR
122
0100
Footwear and similar
1
110000
AGRICULTURAL AND
HEAVY MACHINERY
122
0200
Textile industry
1
110100
Agricultural machinery 122
0300
Clothing
1
110200
Heavy machinery
123
0000
TRANSPORT
1
120000
TRANSPORTATION MATERIAL
123
0100
Air transport
1
120100
Bodywork 123
0200
Collective transport
1
120200
Shipbuilding 123
0300
Maritime and river transport
1
120300
Aeronautical material 123
0400
Road freight transport
1
120400
Railway material 124
0000
TOURISM
1
120500
Motor vehicles 124
0100
Hotels
1
120600
Diverse transportation materials 124 0200 Travel agencies 1 130000 MECHANICS 125 0000 OTHER INDUSTRIAL ACTIVITIES 1 130100 Machines and engines 1 130200 Diverse mechanical equipment 199 0000 PUBLIC SERVICES 1 130300 Auto parts 199 0100 Telecommunications 199 0200 Electricity services 1 140000 METALLURGICAL 199 0300 Water, sanitation and gas services 1 140100 Metallurgy 199 0400 Port and airport services

1
140200
Steelmaking 199
0500
Planning and development services 199 0600 Diverse administrative services

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ATTACHED MODEL "A"

STATEMENT OF COMPOSITION AND DIVERSIFICATION OF APPLICATIONS

PERIOD ______

Fund Name:

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APPLICATIONS - SPECIFICATION FINAL POSITION

SPECIES/ QUANTITY VALUES IN $ % OF FORM COST MARKET APPLICATION

1. SHARES

Drinks and Tobacco
Cia. A PP X.XXX .XX
Cia. B PS X.XXX X.XXX XXX .XX X.XXX XXX X.XX

Metallurgical
Cia. C PA X.XXX XX
Cia. D OP XXX X.XXX X.XXX X.XX ... X.XXX X.XXXX X.XX

Totals......
XX.XX
X
XX.XXX 72,50

2. OWN BONDS

Government Bonds
LBC XXX X.XXX X.XXX X.XX
LFT XXX X.XXX X.XXX X.XX
OTM X.XXX X.XX
Debentures
Cia. M R/E XXX X.XXX X.XXX X.XX Cia. N F/P XXX X.XX

Totals......
X.XXX X.XXX 21,10

3. BONDS LINKED
TO RESALES Totals......

XXX
XXX 4,30

Total Portfolio......
XX.XX
X
XX.XXX 97,90

Other applications:
4. CASH XXX 1,20
5. AMOUNTS RECEIVABLE
()
XX 0,40
6. DEFERRED
EXPENSES, NET OF
ACCUMULATED
AMORTIZATIONS.
XX 0,50

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Total Applications ......
XX.XXX 100,00
7. AMOUNTS PAYABLE (XXX)

Net Assets......
XXX.XXX

() Includes margin deposits - fut. merch.

(OBS.: THE REAL SIZE SHOULD BE A3 FORMAT: 297 X 420 mm)